2. A and B agreed to form a partnership. A shall contribute ₱80,000 cash while B shall contribute ₱200,000 cash. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have equal interests in the partnership capital. After recording the partners’ contributions, A’s capital account should have a balance of
2. A and B agreed to form a partnership. A shall contribute ₱80,000 cash while B shall contribute ₱200,000 cash. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have equal interests in the partnership capital. After recording the partners’ contributions, A’s capital account should have a balance of
2. A and B agreed to form a partnership. A shall contribute ₱80,000 cash while B shall contribute ₱200,000 cash. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have equal interests in the partnership capital. After recording the partners’ contributions, A’s capital account should have a balance of
2. A and B agreed to form a partnership. A shall contribute ₱80,000 cash while B shall contribute ₱200,000 cash. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have equal interests in the partnership capital. After recording the partners’ contributions, A’s capital account should have a balance of
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.
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